Self-employed on a low income needs a loaned £3-4k buffer cash to be repaid within 2 years 16 December 2021 at 5:52PM in Loans 78 replies 2.8K views

[Deleted User]

Yes, a little. You're looking for mainstream lending. IFAs don't play in that market.

Ajax67

Deleted_User said:

Yes, a little. You're looking for mainstream lending. IFAs don't play in that market.

At least brokers. But I am not allowed to post any links 

LaHostessAvecLaMostess

Ajax67 said:

Deleted_User said:

The onus is only on you because you want the loan. Inaction is an option if you prefer it, but it's the same as choosing to remain as you are.

No one, least of all me, is pushing you to take a loan. In fact, I strongly advise against it.

But there may be some independent financial advisers available in the UK who would have some expertise to quantify my approval chances when choosing various providers or platforms for business funding.

Or am I naive in this assumption?

Nobody is going to lend a self-employed window cleaner earning 2/3rds of minimum wage any money so they can earn minimum wage.

On paper, you can't afford to live, so they won't lend you any money

They end.

Ajax67

LaHostessAvecLaMostess said:

Ajax67 said:

Deleted_User said:

The onus is only on you because you want the loan. Inaction is an option if you prefer it, but it's the same as choosing to remain as you are.

No one, least of all me, is pushing you to take a loan. In fact, I strongly advise against it.

But there may be some independent financial advisers available in the UK who would have some expertise to quantify my approval chances when choosing various providers or platforms for business funding.

Or am I naive in this assumption?

Nobody is going to lend a self-employed window cleaner earning 2/3rds of minimum wage any money so they can earn minimum wage.

On paper, you can't afford to live, so they won't lend you any money

They end.

That sounds quite nasty, but not unrealistic. It reminds me of a scene from some French film comedy. During legal proceedings, a judge utters on a witness: "you don't exist!", although the witness evidently exists. But he can't produce any birth certificate...

Ajax67

LaHostessAvecLaMostess said:

Ajax67 said:

Deleted_User said:

The onus is only on you because you want the loan. Inaction is an option if you prefer it, but it's the same as choosing to remain as you are.

No one, least of all me, is pushing you to take a loan. In fact, I strongly advise against it.

But there may be some independent financial advisers available in the UK who would have some expertise to quantify my approval chances when choosing various providers or platforms for business funding.

Or am I naive in this assumption?

Nobody is going to lend a self-employed window cleaner earning 2/3rds of minimum wage any money so they can earn minimum wage.

On paper, you can't afford to live, so they won't lend you any money

They end.

And if I reassessed my earning potential after the introduction of the new kit, and if I was subsequently able to demonstrate in my business plan that I can earn say 4/3rds or 5/3rds of the NMW after receiving the business loan, would I possibly be back in the game? Thank you.

warby68

A lender will look at your ability to first cover your overheads, then pay your finance commitments, then your personal income and tax requirements and with a little bit of margin for all of them.

However at the numbers you are talking about, and without wishing to offend you, you may not get through the door with any of those options you are suggesting. You probably won't know unless you try. You earn £10k and are looking at £15k - its very very small in business terms for someone to take the time to look at. That's why I suggested personal vehicle finance of a modest amount where the scrutiny is more like just your and the vehicle's risk rather than the business.

Your 'strength' if you do get to present the business to anyone is that you have saved a large contribution towards your business plan. You can put in £11k and 'only' want to borrow £4k secured on the vehicle. You then have £4k left for your 'float' but I would generalise on this and just say you'll have a small contingency. Certainly not put across a desire to always have a certain amount just 'because'.

A business plan for a self employed window cleaner can be on a page or two. Its quality not quantity. You need to demonstrate why spending X will improve income by Y. So, where will the extra demand come from, do you have a waiting list? As I understand it in many areas window cleaners have 'turf' and its not done to go on someone else's patch. Where will the savings come in? Will you work faster? Is it one hour per job now reducing to 30m say.  Then out of this this new income what will you have to pay? 

Be prepared to answer where your £15k of savings have come from? Its a relatively large amount to save on the income you've declared.

Ajax67

warby68 said:

A lender will look at your ability to first cover your overheads, then pay your finance commitments, then your personal income and tax requirements and with a little bit of margin for all of them.

However at the numbers you are talking about, and without wishing to offend you, you may not get through the door with any of those options you are suggesting. You probably won't know unless you try. You earn £10k and are looking at £15k - its very very small in business terms for someone to take the time to look at. That's why I suggested personal vehicle finance of a modest amount where the scrutiny is more like just your and the vehicle's risk rather than the business.

Your 'strength' if you do get to present the business to anyone is that you have saved a large contribution towards your business plan. You can put in £11k and 'only' want to borrow £4k secured on the vehicle. You then have £4k left for your 'float' but I would generalise on this and just say you'll have a small contingency. Certainly not put across a desire to always have a certain amount just 'because'.

A business plan for a self employed window cleaner can be on a page or two. Its quality not quantity. You need to demonstrate why spending X will improve income by Y. So, where will the extra demand come from, do you have a waiting list? As I understand it in many areas window cleaners have 'turf' and its not done to go on someone else's patch. Where will the savings come in? Will you work faster? Is it one hour per job now reducing to 30m say.  Then out of this this new income what will you have to pay? 

Be prepared to answer where your £15k of savings have come from? Its a relatively large amount to save on the income you've declared.

Many thanks. And what do you think about crowdfunding platforms?

Sncjw

Ajax67 said:

warby68 said:

A lender will look at your ability to first cover your overheads, then pay your finance commitments, then your personal income and tax requirements and with a little bit of margin for all of them.

However at the numbers you are talking about, and without wishing to offend you, you may not get through the door with any of those options you are suggesting. You probably won't know unless you try. You earn £10k and are looking at £15k - its very very small in business terms for someone to take the time to look at. That's why I suggested personal vehicle finance of a modest amount where the scrutiny is more like just your and the vehicle's risk rather than the business.

Your 'strength' if you do get to present the business to anyone is that you have saved a large contribution towards your business plan. You can put in £11k and 'only' want to borrow £4k secured on the vehicle. You then have £4k left for your 'float' but I would generalise on this and just say you'll have a small contingency. Certainly not put across a desire to always have a certain amount just 'because'.

A business plan for a self employed window cleaner can be on a page or two. Its quality not quantity. You need to demonstrate why spending X will improve income by Y. So, where will the extra demand come from, do you have a waiting list? As I understand it in many areas window cleaners have 'turf' and its not done to go on someone else's patch. Where will the savings come in? Will you work faster? Is it one hour per job now reducing to 30m say.  Then out of this this new income what will you have to pay? 

Be prepared to answer where your £15k of savings have come from? Its a relatively large amount to save on the income you've declared.

Many thanks. And what do you think about crowdfunding platforms?

They will take alot. Longer to get rhe funds. Most crowd funding the funders would get something out of it and usually a larger scale business than a local window cleaner. 

Why can't you charge more so that you make at least minimum wage? How do you live on so little and able to pay back a credit card and alsp save 15k? 

Ajax67

@Sncjw I have been window cleaning for more than 5 years, and as a window cleaner, I have never cared about any NMW or NLW. I am single, childless and my living costs are probably - compared to most people - extremely low. Until the beginning of last year, I was even able to pay more than £250 monthly instalments towards the loan that I increased before the start of my self-employment. Without any starving, fuel poverty or dependence on food banks or any other charity services. Then, in Summer 2020, my mother died, and half-year later I inherited some modest lump sum. Anyway, from the government or banking sector point of view, I am apparently a dead man, if not even a Martian.

warby68

Ajax67 said:

warby68 said:

A lender will look at your ability to first cover your overheads, then pay your finance commitments, then your personal income and tax requirements and with a little bit of margin for all of them.

However at the numbers you are talking about, and without wishing to offend you, you may not get through the door with any of those options you are suggesting. You probably won't know unless you try. You earn £10k and are looking at £15k - its very very small in business terms for someone to take the time to look at. That's why I suggested personal vehicle finance of a modest amount where the scrutiny is more like just your and the vehicle's risk rather than the business.

Your 'strength' if you do get to present the business to anyone is that you have saved a large contribution towards your business plan. You can put in £11k and 'only' want to borrow £4k secured on the vehicle. You then have £4k left for your 'float' but I would generalise on this and just say you'll have a small contingency. Certainly not put across a desire to always have a certain amount just 'because'.

A business plan for a self employed window cleaner can be on a page or two. Its quality not quantity. You need to demonstrate why spending X will improve income by Y. So, where will the extra demand come from, do you have a waiting list? As I understand it in many areas window cleaners have 'turf' and its not done to go on someone else's patch. Where will the savings come in? Will you work faster? Is it one hour per job now reducing to 30m say.  Then out of this this new income what will you have to pay? 

Be prepared to answer where your £15k of savings have come from? Its a relatively large amount to save on the income you've declared.

Many thanks. And what do you think about crowdfunding platforms?

Not my field really. If you mean the angel investor type I doubt a sole trader window cleaner will qualify - its usually for start ups, inventions etc. If you mean the GoFundMe 'please help me' ones who know

This is meant kindly but you're probably over thinking. Try a couple of small scale credit applications. If you get nowhere wait a bit longer or shave a few k off your spending plans.